Provisional Measure extends deadline for adaptation to the New Bidding Law

On March 31, 2023, Brazil’s Federal Government amended Provisional Measure No. 1,167, which changes the date of repeal of the Bidding Law (Law No. 8,666/93), as well as the Special System for Public Contracting (Articles 1 to 47-A set forth in Law No. 12,462/11) and Auction Modality Law (Law No. 10,520/2002). According to the Provisional Measure, the Government can adapt public contracting proceedings to the new system, provided for in the New Bidding Law (Law No. 14,133/2021), by December 29, 2023.

Provisional Measure No. 1,167 extends the original deadline (April 01, 2023) established in the New Bidding Law, granting nine more months for federal, state, and municipal government entities and agencies to sign contracts under the previous system, while they adapt to the new rules.

In accordance with a consultation carried out by the National Confederation of Municipalities (“CNM”), 60% of the Brazilian municipalities weren’t able to implement the New Bidding Law within the original deadline, which is one of the factors that contributed to its extension.

In this regard, it is worth noting that the New Bidding Law introduces significant changes and new elements to bidding procedures, such as: exclusion of solicitation of prices, invitation, and the special contracting system; change in the bidding procedure steps; inclusion of the need to implement the National Portal for Public Contracting (“PNCP”); and development of the annual contracting plan.

As a result, Government bodies may opt for the old system up to December 29, 2023 (deadline to adapt to the new rules), provided that they expressly state their choice in the public notice. 

Demarest’s Infrastructure and ​​​​​​​Public and Regulatory Law​​​​​​​ team will continue to monitor the updates of the sector and is available to provide any further clarifications that may be necessary.